- What Is Lido Finance and Why Stake ATOM?
- Prerequisites for Staking ATOM on Lido
- Step-by-Step Guide to Stake ATOM on Lido
- 1. Connect Your Wallet
- 2. Select ATOM and Enter Stake Amount
- 3. Confirm the Transaction
- 4. Receive stATOM Tokens
- 5. Track Your Rewards
- Benefits of Staking ATOM via Lido
- Risks and Considerations
- FAQ: Staking ATOM on Lido
- Is there a minimum stake amount?
- How long does unstaking take?
- What are the fees?
- Is Lido secure for ATOM staking?
- Are staking rewards taxable?
What Is Lido Finance and Why Stake ATOM?
Lido Finance is a leading liquid staking platform that lets users stake cryptocurrencies like ATOM (Cosmos) while maintaining liquidity. Unlike traditional staking, which locks your assets, Lido issues stATOM tokens representing your staked position. These tokens can be traded or used in DeFi, letting you earn rewards without sacrificing flexibility.
Prerequisites for Staking ATOM on Lido
- A compatible wallet (e.g., Keplr, MetaMask, or WalletConnect).
- ATOM tokens in your wallet.
- Enough crypto to cover transaction fees (usually under $1).
Step-by-Step Guide to Stake ATOM on Lido
1. Connect Your Wallet
Visit the Lido Finance app and click ‘Connect Wallet’. Choose your wallet provider and approve the connection.
2. Select ATOM and Enter Stake Amount
Choose ATOM from the list of supported assets. Enter the amount you want to stake (no minimum required).
3. Confirm the Transaction
Review details like estimated rewards and fees. Approve the transaction in your wallet.
4. Receive stATOM Tokens
After confirmation, you’ll receive stATOM tokens 1:1 with your staked ATOM. These accrue rewards automatically.
5. Track Your Rewards
Monitor your stATOM balance on Lido’s dashboard or through supported DeFi platforms like Osmosis or JunoSwap.
Benefits of Staking ATOM via Lido
- Instant liquidity via stATOM tokens
- No minimum stake amount
- Daily reward compounding
- Integration with major DeFi protocols
Risks and Considerations
- Smart contract vulnerabilities (Lido audits its code regularly)
- Cosmos network slashing risks (Lido uses professional validators)
- Potential impermanent loss if trading stATOM
FAQ: Staking ATOM on Lido
Is there a minimum stake amount?
No – you can stake any amount of ATOM.
How long does unstaking take?
Unstaking takes 21-24 days via Lido’s unbonding process.
What are the fees?
Lido charges 10% on staking rewards, plus network gas fees.
Is Lido secure for ATOM staking?
Yes – Lido uses audited contracts and distributes stakes across reputable validators.
Are staking rewards taxable?
In most jurisdictions, yes. Consult a tax professional for guidance.
